Canadian rail freight company, Canadian National Railway(CN) has launched a fresh attempt to see the proposed acquisition of the Elgin, Joliet & Eastern Railway Company (EJ&E) by Canadian National, completed by years end.

Emerged in what could be said to be a three way battle over the acquisition, Canadian National is having to answer to local Chicago area communities as well as the United States Surface Transportation Board(STB) to see what the company describes as an important transaction that is in the broader public interest, approved.

Having received indications recently from the United States Steel Corporation that the sale would not proceed past the years end, Canadian National has now requested via petition that the STB decide by September 15 whether it will modify its procedural schedule to provide for a decision by October 15 on the transportation merits of the EJ&E Acquisition.

Further to the schedule request, Canadian National has proposed a situation whereby the company would not introduce new trains to the EJ&E lines until the favourable completion of the STB’s environmental review.  A situation that Canadian National says would preserve the environmental status and protect the interests of all, pending the review.

The President and Chief Executive Officer of Canadian National Railway, Hunter Harrison again argued that the "transaction has far-reaching economic and transportation benefits to the Chicago region, the Midwest, and the nation as well as for CN and its customers."  Harrison further saying that the transaction "enjoys significant support from a broad array of shippers and the range of other parties who have a stake in making sure that the serious rail congestion issues plaguing Chicago are being addressed by sound transportation initiatives such as the acquisition by CN of the EJ&E."

Canadian National, in petitioning the STB has said that should the board not act by September 15, 2008, the company will be prepared to petition the United States Court of Appeals, for the District of Columbia Circuit, immediately thereafter to compel the STB to issue a final decision that would permit CN to close the transaction by December 31, 2008.

Despite introducing the prospect of legal action, Canadian National has stated that by requesting an STB decision by September 15, solely on the question of whether the STB will agree to issue a final decision on the transportation merits by October 15, CN hopes to avoid the need for judicial intervention.

Source: Marketwire

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